Revitalizing Tax Rates: UTGST Amendment

Background: Central Government amends Union Territory Goods and Services Tax (UTGST) rates per Section 7 of UTGST Act, 2017, based on Council recommendations.

Notification Amendments: Changes in clauses (v) and (vi) of the opening paragraph for clarity. Addition of clause (vii) specifying a 0.75% rate for goods in Schedule VII.

Schedule I – 2.5% Amendment: Modification for goods "pre-packaged and labelled" in various categories. New entry for pre-packaged and labelled items like Curd, Lassi, Butter milk.

Specific Changes in Schedule I: Modification in descriptions for items 1, 2, 11, 13, 16, 25, 26, and 30, indicating "pre-packaged and labelled." Inclusion of items like Jaggery and Khandsari Sugar as pre-packaged and labelled.

New Entries: Addition of entries for Puffed rice (Muri), flattened or beaten rice (Chira), Murki, all pre-packaged and labelled.

Omission: Removal of S. No. 163 and corresponding entries.

Effective Date: The amendments come into effect promptly.

These amendments aim to streamline tax rates and classifications under UTGST, ensuring clarity and aligning with the evolving market landscape.